Xbox Blu-ray 360

The sources told DigiTimes that Xbox 360 Blu-ray drives manufactured by Lite-On would cost Microsoft $95-$100 a pop—a significant margin higher that their current DVD drives that run $18-$20. Especially with Sony in a unique position to limit supply of some Blu-ray drive components, this could mean that Microsoft’s Xbox 360 would once again cost more to produce than Microsoft recouped in sales.

But if said scenarios is true, DigiTimes is overlooking on option in Microsoft’s playbook.